By Apu Pavithran, CEO & Founder, Hexnode
In a world where data is considered the new oil, safeguarding personal information has
become paramount. As data breaches and privacy concerns escalate, governments
worldwide are stepping in to protect their citizens digital rights. India’s Digital Personal Data Protection Act (DPDPA) is a recent addition to this trend, aimed at regulating the use and storage of personal data. As the rules for this legislation are anticipated to be
released soon, businesses both in India and abroad must urgently prepare to comply
with the new regulations.
Regulatory Act: What’s the Rush?
As organisations digitise their operations, collect vast amounts of customer data, and
leverage analytics for growth, the responsibility to protect this data grows exponentially.
The cost of non-compliance, both financially and reputationally, can be crippling.
Businesses must recognize that data privacy is no longer a mere legal requirement—it’s
a fundamental aspect of customer trust and loyalty. For Indian businesses, the urgency around the DPDPA is heightened by the potential consequences. Non-compliance could lead to hefty fines, legal complications, and even business shutdowns in extreme cases. But the implications stretch beyond Indian borders. Global companies operating in India or processing the personal data of Indian citizens are also within the purview of this law. As we have seen with the European Union’s General Data Protection Regulation (GDPR), failure to comply can have global repercussions.
With the DPDPA, the Indian government is sending a clear message: privacy is a right,
not a privilege. This is a sentiment echoed across the world, underscoring the urgency
of adhering to these new rules. The sooner businesses align their operations with these
principles, the better they will fare in an increasingly regulated world.
DPDPA: What businesses need to know
The DPDPA represents one of the most comprehensive data privacy laws in Asia,
closely mirroring the GDPR in its scope and severity. The DPDPA applies not just to businesses located in India but also to any organisation processing the personal data of Indian citizens, regardless of where they are based.
This extraterritorial application means that multinational corporations must reassess
their data handling practices to ensure they comply with Indian law. Moreover, the DPDPA mandates data minimisation, ensuring that only necessary data is collected, and it should be used strictly for the purpose for which it was collected. This pushes organisations to rethink their data collection strategies and focus on reducing unnecessary data hoarding—a practice that has often led to significant data breaches.
Data localisation is another crucial aspect of the DPDPA. Businesses may be required to store sensitive data on Indian citizens within Indian borders. This provision aligns with India’s broader geopolitical strategy to safeguard its citizens data from foreign surveillance and misuse. For businesses, this will necessitate investment in local infrastructure or partnerships with local data centers.
The DPDPA not only introduces stricter rules but also imposes hefty penalties for non-
compliance. This mirrors the approach taken by the GDPR. Furthermore, to ensure compliance and address concerns, the Act establishes the Data Protection Board of India (DPBI). This board will monitor organisations adherence to the DPDPA and handle any complaints, adding another layer of accountability for businesses.
Actionable strategies for businesses
Adapting to the DPDPA will require tailored approaches, as different sectors face unique challenges based on their data handling practices, customer bases, and geographical scope. However, some fundamental strategies can help businesses effectively navigate this new regulatory landscape.
First, conducting a comprehensive data audit is essential. Businesses need to understand what data they collect, where it is stored, and who has access to it. Mapping out data flows allows organisations to identify risks and address them proactively, laying the groundwork for robust compliance. Appointing a Data Protection Officer (DPO) is another critical step. The DPO will be responsible for overseeing compliance efforts, serving as the primary point of contact for regulatory bodies, and handling data subject requests. While it’s not yet established whether it’s mandatory or not, it is safe to say that this role is vital for embedding a culture of data privacy within the organisation.
Technology can also play a significant role in ensuring compliance. Tools such as Unified Endpoint Management (UEM) solutions, encryption technologies, and data loss prevention (DLP) systems can help businesses monitor data flows, detect anomalies, and prevent unauthorised access. By leveraging these tools, companies can automate compliance processes and reduce the risk of human error.
Building a culture of data privacy is perhaps one of the most impactful measures an organisation can take. Compliance is not just a legal or technological challenge—it is a cultural one. Organisations should also prepare a robust data breach response plan. Despite the best preventive measures, breaches can still occur, and how a company
responds can significantly affect its reputation and bottom line. A well-defined response
plan should outline the steps for containment, assessment, notification, and remediation, ensuring that the organisation can act quickly and effectively.
As the specifics of the DPDPA rules unfold, businesses must take proactive steps to ensure compliance. By understanding the urgency, staying informed on key updates, and implementing actionable strategies, organisations can navigate this complex landscape successfully, turning potential challenges into growth opportunities.
